New PEI Powers of Attorney and Personal Directives Act
By Zach Geldert
New legislation will come into force on November 1, 2025, concerning powers of attorney and personal directives in Prince Edward Island. The new act, Powers of Attorney and Personal Directives Act (PEI) (the “New Act”) modernizes the legislative scheme for the giving of decision-making power to others in Prince Edward Island.
The New Act offers more legislated choices. The person making a power of attorney or personal directive (referred to as a “principal” in the New Act) can choose to fine tune how decisions are made on their behalf. The power of attorney enables another to address financial matters of a principal. The personal directive enables another to make decisions about “personal matters” for a principal.
The New Act also introduces the personal directive in PEI. Previously, there was a perceived gap in the legislative scheme that did not allow decision makers to make decisions about the principal’s personal affairs. Financial affairs were previously addressed under the old Powers of Attorney Act and healthcare decisions were addressed under the Consent to Treatment and Healthcare Directives Act. This left decisions about who one may associate with and, in some cases, where one may live, in a legal ambiguity. A court application was sometimes required to address the gap which can now be filled by personal directives. A personal directive is a useful and expedient tool which may assist friends and/or family members of a principal in the later years of their lives.
The New Act and its associated regulations also provide more protection for principals. All Attorneys (under powers of attorney) and Agents (under personal directives), including those acting under a power of attorney made prior to the enactment of the New Act, must now ensure that they conform with more explicit requirements. These can include requirements to account to one or more persons about the financial dealings of the attorney, and ensuring that the decision maker is not in a position of disproportionate control or power over the principal.
The New Act will bring the legislation in PEI more in line with other jurisdictions in Canada. However, those making a new power of attorney or personal directive should be aware of the circumstances of the people they choose to appoint as their Attorney or Agent. Stricter requirements now exist concerning bankruptcies and criminal convictions in the last ten years, which may unintentionally prohibit a person from acting as an Attorney or Agent.
Those who make powers of attorneys or personal directives must exercise a degree of extra diligence. Regular review of all estate planning documents will become increasingly necessary to ensure that Attorneys and Agents continue to maintain their ability to act. A lawyer can assist in this review and help guide principals through this new and more robust legislation.
This article provides an overview of some, but not all, of the changes which will come into effect on November 1, 2025. A more complete review of the legislation as it applies to an individual situation will require a detailed analysis with a lawyer. This summary is not comprehensive and is for information purposes only.
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